Since it has been a public company, Google has stuck to a virtuous policy of not playing the Wall Street game by refusing to give earnings guidance. It is now suffering Wall Street’s revenge.
The harsh analysts’ reaction to Google’s recent earnings announcement – the first since Larry Page became its solo chief executive – compared with analysts’ enthusiasm about Apple’s earnings shows what Mr Page is up against.
In contrast to Google, Apple blatantly tries to set earning expectations low enough that it will “beat the Street” each time. It did so spectacularly with its second quarter earnings announcement on Wednesday. Read more